Corporate Webpages ABM Industries, Inc.
ABM Industries (formerly American Building Maintenance) (ABM)
operates in four distinct segments, engineering (facilities
management), parking, janitorial services, and security.
Once again, we thought perhaps "boring" was good. That's
because we equate "boring" with predictability, an important
element in stock trading. The company stock has a rather flat
chart performance. But we thought the potential to make money
through options trading would be there. Unfortunately, we
found the option trading so thin that the company did not make
the cut on what we consider an "optionable" candidate.
Nonetheless, in contrast to both researchers and analysts (with
the exception of Cramer, who is running against the tide), we
think the company has strong fundamentals. It also pays a 2.8%
dividend and has reasonable corporate governance save for the
fact that it has some poison pill provisions that make takeover
difficult for some other entity. But that again helps predictability.
Since our emphasis has been increasingly on options in what we
consider a mature and aging bull market with few bargains left,
this stock is more of a buy and hold and dividend play.
The company had to battle with Zurich American Insurance company
when it suffered severe losses in the World Trade Center 911
destruction. It won its court battles and was compensated. The
company also has to deal with a very watchful government eye on
its hiring of documented workers. The company has several new
growth areas opening up for it, particularly the installation of
charging stations in its parking services, and lucrative
government contracts to maintain facilities needing charging stations.
Also the company recently became involved in very lucrative
military support operations, including foreign language
services, through its purchase of Linc Government Services.
This latter subsidiary also provides sustainability practices
consulting services for facility designs.
The reason we think the company stock has looked so weak lately
despite its participation in one of the strongest performing
industry groups, business services, is because businesses have
been reluctant to acquire additional services in the current
economic climate. That may be about to change.
01-20-2012: ABM Industries, Inc. (ABM): New Opportunities in Sustainability and Energy Efficiency
(WAIT FOR PAGE TO LOAD COMPLETELY BEFORE LINKS WORK.)
Company Profile
Company History
News
Comparison with Peers
Bond Issue
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Financial Statements
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Intrinsic Value (Disc. CashFlow)
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Research Reports
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Stock Report
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Company Profile |
Company History |
News |
Comparison |
Similar Companies Performance:
Bond Issue |
Zenith Index |
Under current market conditions, a Zenith Index Score of 1.20 or above is required for a positive rating on this factor. 1.21 -1.30 is considered acceptable, 1.30-1.40 is consider strong and > 1.40 is considered exceptionally strong. Accounting statements in this section often contain mistakes, especially in earlier years' totals, but data is deemed sufficient for us to give a rating. More accurate financial statements follow in the next section.
ABM Industries Inc. (ABM ) Sector: Services
551 Fifth Avenue Industry: Business Services
Suite 300 Exchange: NYSE
New York, NY 10176
ABM Industries Incorporated, through its subsidiaries, provides integrated
facilities management services in the United States. The company-Ęs
Janitorial segment offers floor cleaning and finishing, window washing,
furniture polishing, carpet cleaning and dusting, and other building
cleaning services for commercial office buildings, industrial buildings,
retail stores, shopping centers, warehouses, airport terminals, health
facilities, educational institutions, stadiums and arenas, and government
buildings. Its Engineering segment provides mobile and onsite services
comprising mechanical engineering and technical services and solutions for
infrastructure systems, including maintenance, retro-commissioning,
mechanical retrofits and upgrades, electric vehicle charging stations,
electrical service, systems start-ups, performance testing, and energy
audits to government facilities, military installations, commercial
infrastructure, airports/transportation centers, healthcare centers and
hospitals, data centers, manufacturing facilities, educational campuses,
corporate office buildings, resorts, shopping malls, museums, and
residences. This segment also offers support programs to government, such
as leadership development, education and training, language support,
educational institutions, municipalities, and airports; and provides
transportation services. Its Security segment offers security services
comprising staffing of security officers, mobile patrol services,
investigative services, electronic monitoring of fire, life safety
systems, access control devices, and security consulting services to
commercial, industrial, retail, medical, petro-chemical, and residential
facilities. The company was founded in 1909 and is headquartered in New
York, New York.
Last Trade: 20.43 52-Week Range: 27.14 - 17.29
Trade Date: 01-18 Avg. Volume: 395,192 Shares
Index Membership: Employees: 96,000
Corporate Governance:
Audit (Low Concern), Board (Low Concern), Compensation
(Medium Concern), Shareholder Rights (High Concern).
EPS: 1.27 Dividend Amount: $ 0.58 Yield: 2.80%
Ex-Dividend Date: Jan 3, 201 Mkt Cap: $ 1,110,000K
Payout Ratio: 44.00%
Last Split Factor (new for old): 2:1 Split Date: May 7, 200
Key Statistics:
Enterprise Value: $ 1,360,000K Revenue (ttm) : $ 4,250,000K
Gross Profit: $ 465,580K
Earnings before Income Tax, Depreciation and Amortization: $ 170,230K
Enterprise Value/Revenue (ttm): 0.32 Revenue per Share: $ 79.95
Enterprise Value/EBITDA (ttm): 8.01 Qtrly Rev Growth (y to y): 20.00%
P/E Ratio (fwd projected): 12.80 P/E Ratio (current): 16.38
P/E Growth Ratio (5 yr expected): 3.49 Operating Margin: 2.77%
Price/Sales Ratio: 0.26 Profit Margin: 1.61%
Price/Book Value: 1.37 Book Value: $ 14.92/sh.
Return on Assets: 4.29% Net Income Avl to Common: $ 68,700K
Return on Equity: 8.95% Diluted Earnings/Share: $ 1.27
Qrtly Earnings Growth (yoy): -17.20%
Balance Sheet Items : Cash Flow Items (ttm):
(most recent qrtr) (trailing 12 mo.)
Total Cash: $ 26,470K Operating Cash Flow:$ 159,990K
Total Debt: $ 300,300K Lvgd Free Cash Flow:$ 74,690K
Total Debt/Equity: 37.73
Total Cash/Share: $ 0.50
Current Ratio: 1.66
Share Statistics: Stock Price History:
Shares Outstanding: 53,350K Stk 52-Week Change: -19.05%
Float: 49,330K S&P 500 52-Wk Chng: 2.17%
Sh. Short % of Float: 6.90% 50-Day Moving Avg: 20.83
Short Ratio: 4.80 200-Day Moving Avg: 20.49
% Held by Institutions: 85.00% Beta: 1.26
% Held by Insiders: 17.28%
Analysts' Estimates: Cur. Qtr Next Qtr Cur. Year Next Year
___________________________ Jan 12 Apr 12 Oct 12 Oct 13
Average Earnings Estimate 0.22 0.30 1.43 1.62
Average Revenue Estimate 70M 1,090M 4,390M 4,570M
Factors Comparing This Company to Its Industry Leader (1.0 = Average):
Long Term EPS Growth Rate (5 yr): 3.508 EPS Growth (Qrtly YoY): 2.583
PEG Ratio (ttm, 5 yr expected): 42.100 P/E Ratio (ttm): 25.700
Revenue Growth (Qrtly YoY): 5.134
Annual Income Statements: All numbers in thousands)
Period Ending Sep30,2011 Oct31,2010 Sep30,2010
Total Revenue 4,246,842 3,495,747 3,495,747
Cost of Revenue 3,781,264 3,134,018 3,134,018
Gross Profit 465,578 361,729 361,729
Operating Expenses:
Research & Development 0 0 0
Selling, General & Administrative 324,762 241,526 241,526
Non-Recurring Expenses 0 0 0
Other Operating Expenses 23,248 11,364 11,364
Total Operating Expenses 0 0 0
Operating Income or Loss 117,568 108,839 108,839
Income from Continuing Operations:
Total Other Income/Expenses Net 0 -127 -127
Earnings Before Interest & Taxes 121,483 108,712 108,712
Interest Expense 15,805 4,639 4,639
Income Before Taxes 105,678 104,073 104,073
Income Tax Expense 36,980 40,203 40,203
Minority Interest 0 0 0
Net Income from Continuing Op.s 68,698 63,870 63,870
Non-recurring Events:
Discontinued Operations -194 251 251
Extraordinary Items 0 0 0
Effect of Accounting Changes 0 0 0
Other Items 0 0 0
Net Income 68,504 64,121 64,121
Preferred Stock & Other Adjustmnts 0 0 0
Net Income Avail To Common Shares 68,504 64,121 64,121
Quarterly Income Statements: All numbers in thousands)
Period Ending Sep30,2011 Jul31,2011 Apr30,2011 Jan31,2011
Total Revenue 1,081,343 1,076,247 1,060,083 1,029,169
Cost of Revenue 959,592 944,318 949,594 927,760
Gross Profit 121,751 131,929 110,489 101,409
Operating Expenses:
Research & Development 0 0 0 0
Selling, General & Adminis. 82,356 84,882 78,324 79,200
Non-Recurring Expenses 0 0 0 0
Other Operating Expenses 5,975 6,314 5,666 5,293
Total Operating Expenses 0 0 0 0
Operating Income or Loss 33,420 40,733 26,499 16,916
Income from Continuing Operations:
Total Other Income/Expenses Net 0 0 0 0
Earnings Before Int. & Taxes 34,550 41,899 27,331 17,703
Interest Expense 3,328 4,114 4,317 4,046
Income Before Taxes 31,222 37,785 23,014 13,657
Income Tax Expense 13,040 9,874 8,814 5,252
Minority Interest 0 0 0 0
Net Income from Continuing Op.s 18,182 27,911 14,200 8,405
Non-recurring Events:
Discontinued Operations -134 -36 -9 -15
Extraordinary Items 0 0 0 0
Effect of Accounting Changes 0 0 0 0
Other Items 0 0 0 0
Net Income 18,048 27,875 14,191 8,390
Preferred Stock & Other Adj.s 0 0 0 0
Net Income Avail To Common Shs 18,048 27,875 14,191 8,390
Annual Balance Sheets: All Numbers in Thousands
Period Ending Sep30,2011 Oct31,2010 Sep30,2010
Current Assets:
Cash & Cash Equivalents 26,467 39,446 39,446
Short Term Investments 0 0 0
Net Receivables 656,270 517,108 522,246
Inventory 0 0 0
Other Current Assets 51,020 52,202 47,064
Total Current Assets 733,757 608,756 608,756
Long-Term Investments 95,650 95,576 95,576
Property, Plant & Equipt 60,009 58,088 58,088
Goodwill 750,872 593,983 593,983
Intangible Assets 128,994 65,774 65,774
Accumulated Amortization 0 0 0
Other Assets 79,368 75,425 75,425
Deferred Long Term Asset Charges 30,948 51,068 51,068
Total Assets 1,879,598 1,548,670 1,548,670
Current Liabilities:
Accounts Payable 443,196 333,780 333,851
Short/Current Long Term Debt 0 0 0
Other Current Liabilities 0 71 0
Total Current Liabilities 443,196 333,851 333,851
Long Term Debt 300,000 140,500 140,500
Other Liabilities 340,516 335,294 335,294
Deferred LT Liability Charges 0 0 0
Minority Interest 0 0 0
Negative Goodwill 0 0 0
Total Liabilities 1,083,712 809,645 809,645
Stockholder Equity:
Misc. Stocks Options Warrants 0 0 0
Redeemable Perferred Stock 0 0 0
Preferred Stock 0 0 0
Common Stock 533 526 526
Retained Earnings 586,625 547,944 547,944
Treasury Stock 0 0 0
Capital Surplus 211,389 192,418 192,418
Other Stockholder Equity -2,661 -1,863 -1,863
Total Stockholder Equity 795,886 739,025 739,025
Net Tangible Assets -83,980 79,268 79,268
Quarterly Balance Sheets: All Numbers in Thousands
Period Ending Sep30,2011 Jul31,2011 Apr30,2011 Jan31,2011
Current Assets:
Cash & Cash Equivalents 26,467 39,614 23,290 31,365
Short Term Investments 0 0 0 0
Net Receivables 656,270 662,446 634,843 645,877
Inventory 0 0 0 0
Other Current Assets 51,020 62,996 57,832 59,510
Total Current Assets 733,757 765,056 715,965 736,752
Long-Term Investments 95,650 34,332 34,944 107,731
Property, Plant & Equipt 60,009 62,055 62,346 66,176
Goodwill 750,872 746,832 742,179 726,518
Intangible Assets 128,994 135,119 140,924 162,398
Accumulated Amortization 0 0 0 0
Other Assets 79,368 140,962 175,424 104,686
Deferred LT Asset Charges 30,948 42,479 45,209 51,578
Total Assets 1,879,598 1,926,835 1,916,991 1,955,839
Current Liabilities:
Accounts Payable 443,196 442,309 402,359 420,580
Current Portion LT Debt 0 0 0 0
Other Current Liabilities 0 0 0 0
Total Current Liabilities 443,196 442,309 402,359 420,580
Long Term Debt 300,000 365,000 396,000 430,000
Other Liabilities 340,516 335,388 358,375 356,370
Deferred LT Liab. Charges 0 0 0 0
Minority Interest 0 0 0 0
Negative Goodwill 0 0 0 0
Total Liabilities 1,083,712 1,142,697 1,156,734 1,206,950
Stockholder Equity:
Misc. Options, WarrantS 0 0 0 0
Redeemable Perferred Stock 0 0 0 0
Preferred Stock 0 0 0 0
Common Stock 533 532 531 530
Retained Earnings 586,625 576,139 555,821 549,177
Treasury Stock 0 0 0 0
Capital Surplus 211,389 208,600 204,613 200,079
Other Stockholder Equity -2,661 -1,133 -708 -897
Total Stockholder Equity 795,886 784,138 760,257 748,889
Net Tangible Assets -83,980 -97,813 -122,846 -140,027
Annual Cash Flow: All Numbers in Thousands
Period Ending Sep30,2011 Oct31,2010 Sep30,2010
Net Income 68,504 27,875 64,121
Operating Activites:
Depreciation 53,532 37,227 37,227
Adjustments to Net Income 31,143 23,178 22,861
Changes in Accounts Recv'bls -12,944 -2,005 -2,005
Changes in Liabilities 18,389 14,666 14,983
Changes in Inventories 0 0 0
Changes in Other Op'ing Actv's 0 3,559 3,559
Total Cash Flow fr Operations 159,990 149,864 149,864
Investing Activities:
Capital Expenditures -22,124 -23,942 -23,942
Investments 4,785 0 0
Other Cash Flows fr Investing 0 0 0
Total Cash Flows fr Investing -307,412 -87,860 -87,860
Financing Acitivies:
Dividends Paid -29,744 -28,152 -28,152
Sale or Purchase of Stock 9,708 11,376 11,376
Net Borrowings 159,500 -39,935 -39,935
Other Cash Flows fr Financing 0 0 0
Total Cash Flows fr Financing 134,443 -56,711 -56,711
Effect of Exchange Rate Change 0 0 0
Change in Cash & Cash Equiv.s -12,979 5,293 5,293
Quarterly Cash Flow: All Numbers in Thousands
Period Ending Sep30,2011 Jul31,2011 Apr30,2011 Jan31,2011
Net Income 18,048 27,875 14,191 8,390
Operating Activites:
Depreciation 13,867 13,323 13,448 12,894
Adjustments to Net Income 9,502 10,823 6,264 4,554
Changes in Accounts Recv'bls 12,564 -4,197 15,798 -37,109
Changes in Liabilities 15,998 2,973 -17,148 16,566
Changes in Inventories 0 0 0 0
Changes in Other Oper'g Acts 0 4,269 231 -1,287
Total Cash Flow f Operations 75,153 51,660 31,880 1,297
Investing Activities:
Capital Expenditures -5,577 -6,449 -4,885 -5,213
Investments 740 -162 4,837 -630
Other Cash Flows fr Investing 0 1,771 310 -292,144
Total Cash Flows fr Investing -4,847 -4,840 262 -297,987
Financing Acitivies:
Dividends Paid -7,466 -7,444 -7,436 -7,398
Sale or Purchase of Stock 189 1,788 2,000 5,731
Net Borrowings -76,146 -24,840 -34,781 295,267
Other Cash Flows fr Financing 0 0 0 0
Total Cash Flows fr Financing -83,453 -30,496 -40,217 288,609
Effect of Exchange Rate Chg 0 0 0 0
Change in Cash & Cash Equiv. -13,147 16,324 -8,075 -8,081
ABM ABM Industries Inc. [Indices near +3.0 or near zero,
or < zero bear special attention.]
P/E Ratio Tests:
Current P/E Ratio < 28? 1.7094 P/E Ratio > 5? 1.0000
P/E Ratio Vs Growth Rate: 3.0000 Forward P/E Ratio < 28? 2.1875
Sales Tests:
Price/Sales Ratio < 2.3? 3.0000 Inventory/Sales < 5%? 1.0000
Sales < $1 billion? 0.2355 Operating Margin < 7.5%? 2.7076
Balance Sheet Tests:
Debt/Equity < 0.40? 0.0106 Long-Term Debt Service: 2.6530
LTD Being Reduced? 1.8000 Short-Term Debt Service: 3.0000
Current Ratio > 2? 0.8300 Working Capital >= 1.5? 1.2080
Leverage Ratio < 20%? 1.0898 Debt / Assets < 1? 3.0000
Quick Ratio > 1? 1.5405 Inventory Turnover > 1? 1.0000
Shares Out Decreasing? 2.4000 Market Cap.> 1.5 Billion? 1.3514
Profit Margin > 7.5%? 0.2147
Income Tests:
Dividend Yield > 2.0%? 2.1429 EPS Annual Growth > 10%? 0.2900
Enterprise Value/Revenue: 0.2133 EPS 5-yr Growth > 20%? 1.3600
Enterprise Value/EBITDA: 1.1443 EPS Growth Consistent? 1.8000
EPS Qrtly Growth > 10%? -1.7200 Collection < 45 days? 0.7978
Rev. Qtrly Growth > 15%? 3.0000 Gross Pft/Cur. LTD < 1? 3.0000
EPS Annual Growth > 10%? 0.2900 Borrowing Int. Rate< 6%? 1.8816
Stock Performance Tests:
Volatility > 25%? 1.7736 % Held by Insiders < 5%? 0.2894
Beta > 1.25? 1.0080 % Held by Institut. < 50? 0.5882
50 Da MA > 200 Da MA? 0.0499 % Held by Institut. > 30? 2.8333
52-Wk Change vs. S&P 500: 0.1447 Short Ratio > 5? 0.9600
Price/Book Value < 3? 2.6300 Short % of Float > 20? 0.3450
Return on Assets > 17%? 0.2524 Average Volume > 100,000? 3.0000
Cash Flow Tests:
Oper. C.F. > Lever'd C.F: 2.1421 Positive Free Cash Flow? 1.0000
Positive Oper. Cash Flow? 1.0000 Price to C.F./sh. Ratio: 1.0615
Cash Flow / Assets >.10? 0.3974
ABM ABM Industries Inc. Overall Zenith Index: 1.3957
Financial Statements |
Income Statement:
Balance Sheet:
Cash Flow Statement:
Financial Ratios |
. . . . . . . . . . . . 1 = Highest , 10 = Lowest
Market Grader |
Intrinsic Value (DCF) |
Intrinsic Value by Discounted Cash Flow Method:
Intrinsic Value (PEG) |
Intrinsic Value by Projected Earnings Growth Method:
Stock Scout |
We find "Scout" to be a bit biased toward the high end, so anything under a 6 is considered a negative, 6 and above, positive.
Projected Earnings |
Research Reports |
Analysts' Opinions |
Insider Activity |
Institutional Activity |
Institutional Orders to Buy or Sell:
Sentiment |
Zenith uses the "sentiment" score above or below 50 to award a positive or negative point in the Decision Matrix.
Short Interest Ratio |
As the short interest rises as a percentage of average daily share volume (Days to Cover), this is considered a measure of negative sentiment. Similarly, a decrease in that percentage is considered positive sentiment.
Stock Report |
Management's Discussion of Results of Operations Excerpts |
Moving Average Chart |
Right Time Study |
Channeling Potential |
The summary below includes a value for `Degree,' which refers on a
scale of 1 to 10 the range of a channel in the period under consi-
deration compared to the total range of price movement. It also looks
for the last closing price to be within the channel, otherwise zeroed.
The `Index' is the `Degree' weighted for volatility. Generally, the
the higher the index, the more suitable is the stock for trading as
a `rolling stock' between channel high and low points.
Results for ABM Industries Inc.:
Symbol? ABM
Total Months Available: 49
Months in Cycle? 4
Months Covered by Periods: 12
Period 1 Period 2 Period 3
H1 L1 H2 L2 H3 L3
27.14 22.80 24.04 17.29 22.96 17.51
RANGE = 27.14 TO 17.29 Close = 20.70
CHANNEL = 22.96 TO 22.80 Degree = 0
Volatility = 0.77% Index = 0
Intraday Chart |
2 Days:
Stock Fetcher |
Point & Figure Chart |
Wall Street Analyzer |
Marketspace Chart |
Time Series Forecast |
Neural Network Prediction |
"Neurostock" can only track long trades. Therefore its performance, as tracked by itself on stocks which are consistently falling, may not appear as good as it could if each "sell" signal were a "short sale."
Ultimate Trading Systems |
The corresponding trades for the above chart are shown in tabular form below.
Recommendation |
| Factors | Weighted Points |
|---|---|
| News | + 1 |
| Comparison | + 1 |
| Industry | + 1 |
| Bond Issue | 0 |
| Zenith Index | + 1 |
| Non-GAAP vs. GAAP Earnings < 1% | - 1 |
| Cash Flow | - 1 |
| Ratios | + 1 |
| Market Grader | - 1 |
| Intrinsic Value DCF | + 1 |
| Intrinsic Value DDM | + 1 |
| Stock Scout | + 1 |
| Projected Earnings | + 1 |
| Research Reports | - 1 |
| Analysts | - 1 |
| Executive Perquisites | + 1 |
| Insider Activity | + 1 |
| Institutional Activity | + 1 |
| Management Reporting | + 1 |
| Short Interest | - 1 |
| Sentiment | + 1 |
| Standard & Poor's | + 1 |
| Moving Average | - 1 |
| Right Time Study | - 1 |
| Stock Fetcher | - 1 |
| Point & Figure | + 1 |
| Wall Street Analyzer | + 1 |
| Marketspace Chart | + 1 |
| Time Series Chart | - 1 |
| Neural Network | + 1 |
| Stock Options | - 1 |
| Ultimate Trading Systems | + 1 |
| Total | + 9 |
Place 1,470 shares of ABM Industries Inc. (ABM) on the Active List.
